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Decomposing main effects in moderated regression models

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  • Park, Sang-June
  • Yi, Youjae

Abstract

Previous research has used alternative moderated regression models (MRMs) (e.g., mean-centered MRM) to examine the interaction effect. The interaction effect remains fixed in alternative MRMs. In contrast, the main effects may change in alternative MRMs. Thus, it is common to examine moderation effects with the interaction effect only, although the main effects include useful information. This paper proposes a new MRM with which one can examine and interpret the main effects as well as the interaction effect meaningfully. The new MRM allows one to examine the effects of original predictors. Furthermore, it decomposes main effects into orthogonal components and correlated components. One may examine orthogonal components as the main effects separated from the interaction effect. In addition, one may examine correlated components to assess the degree to which the main effects are correlated with the interaction effect.

Suggested Citation

  • Park, Sang-June & Yi, Youjae, 2023. "Decomposing main effects in moderated regression models," Journal of Business Research, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:jbrese:v:157:y:2023:i:c:s0148296322010426
    DOI: 10.1016/j.jbusres.2022.113577
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    References listed on IDEAS

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    1. Park, Sang-June & Yi, Youjae, 2022. "Assessing moderator effects, main effects, and simple effects without collinearity problems in moderated regression models," Journal of Business Research, Elsevier, vol. 145(C), pages 905-919.
    2. Raj Echambadi & James D. Hess, 2007. "Mean-Centering Does Not Alleviate Collinearity Problems in Moderated Multiple Regression Models," Marketing Science, INFORMS, vol. 26(3), pages 438-445, 05-06.
    3. Arturs Kalnins, 2018. "Multicollinearity: How common factors cause Type 1 errors in multivariate regression," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2362-2385, August.
    4. Shirokova, Galina & Morris, Michael H. & Laskovaia, Anastasiia & Micelotta, Evelyn, 2021. "Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis," Journal of Business Research, Elsevier, vol. 129(C), pages 169-182.
    5. Shukla, Paurav & Rosendo-Rios, Veronica & Khalifa, Dina, 2022. "Is luxury democratization impactful? Its moderating effect between value perceptions and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 139(C), pages 782-793.
    6. Wang, Chenxiao & Qureshi, Israr & Guo, Feng & Zhang, Qingpu, 2022. "Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence," Journal of Business Research, Elsevier, vol. 139(C), pages 1435-1450.
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    Cited by:

    1. Ke Xu & Xianli Xia, 2023. "The Influence of Farmers’ Clan Networks on Their Participation in Living Environment Improvement during the Time of Transition in Traditional Rural China," Agriculture, MDPI, vol. 13(5), pages 1-22, May.

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